Paraguay Convicts Two Bitcoin Miners to Jail Sentences for Large-Scale Energy Theft

Paraguayan Court Convicts Bitcoin Miners for Energy Theft Charges

The Paraguayan justice system has ruled against two individuals who allegedly used stolen energy to mine bitcoin by bypassing the metering system and connecting the power grid directly to their property.

On June 19, the National Power Administration of Paraguay (ANDE) announced that it obtained a favorable decision in a legal process against two miners, after a Paraguayan tribunal found Cristian Daniel Jara Villalba and Ramon Martinez Morinigo liable for energy theft, convicting them to two years in jail.

Nonetheless, even as they were found guilty, the court suspended the execution of the sentence. Even so, the ruling was described as a milestone for the power company, which stressed that it will serve as a strong precedent due to the nature of the case.

This is because one of the defendants, who held the contract with the power company at the location where the miners were discovered, failed to show that he did not know about the use of his property for these means, being also affected by the ruling.

“This judicial decision sets a powerful precedent by establishing that justice will reach not only those who carry out illegal connections but also those who facilitate, permit, or benefit from actions that compromise the national electricity system,” ANDE stressed.

Furthermore, it reaffirmed its “zero-tolerance policy regarding actions that undermine the national electricity system,” vowing to “continue to strengthen controls and legal measures to ensure that those who obtain electricity through illicit means are held accountable before the law.”

The move is part of a fierce fight that the administration has been fighting against illegal mining and energy theft for some years, as these activities have caused millions in losses for the institution and the country.

This is not the first case of a conviction for illegal energy theft destined to mine bitcoin in Paraguay, though. In 2023, Edgar Saavedra and Rodrigo Suares were also convicted of the same crimes and sentenced to spend two years in jail, but had their sentences suspended.

In August 2024, Carlos Raul Rojas was sentenced to 18 months in prison for similar crimes after causing over $1.5 million in losses to ANDE.